EARN25

MRNA Poised to Fall Following Double Dose of Downgrades

Meanwhile, the brokerage bunch is divided

Deputy Editor
Dec 16, 2020 at 9:26 AM
facebook X logo linkedin


Moderna Inc (NASDAQ:MRNA) made headlines recently, after the Food and Drug Administration (FDA) scientists gave the drugmaker's COVID-19 vaccine favorable reviews. Despite the fact that the vaccine could receive emergency authorization later this week, Both Jefferies and Morgan Stanley downgraded MRNA to "hold" and "equal-weight,"  respectively. The former cited "elevated expectations" as the catalyst for the bear note. However, both firms also hit the equity with a price-target hike to $150. Pre-market, Moderna stock is down 6.2%, at $137.85.

Coming into today, the brokerage bunch was divided. Of the 14 in coverage, eight sported a "buy" or better rating, while the remaining six called it a "hold" or worse. Meanwhile, the consensus 12-month price target of $126.60 is a 10.5% discount to last night's close.

On the charts, the first day of December saw Moderna stock soar to a record high of $178.50. On Dec. 8, the equity managed a record close of $169.86, before consolidating just above the $155 level over the next four sessions. Still, year-to-date, MRNA boasts a 652.7% rise. 

Lastly, regarding the options pits, puts have been all the rage. This is per the security's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all other readings in the past 12 months. So, while calls are moving at a quicker pace, this indicates a much healthier-than-usual appetite for puts of late.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!